Registration and ITC provisions in respect of job work - GST Ready Reckoner - GST

Registration provision regarding job worker [ Section 22 of CGST Act, 2017 ] As per section 22(1) of CGST Act Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover exceeds 20 lakh rupees(Rs.10 lakhs for special category in state) in a financial year. As per explanation (i) of section 22(1) of CGST Act the expression aggregate turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. As per explanation (ii) section 22(1) of CGST Act the supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker. Input tax credit in respect of Input Capital goods Sent for Job worker Section 19 of CGST Act 2017 Taking input tax credit in respect of inputs and capital goods sent for job work provides that in case of inputs/capital goods are not returned within 1/3 years from the date of receipt by the job worker it shall be considered as deemed supply The principal shall, be allowed input tax credit on capital goods sent to a job worker for job work. The period of 1/3 year shall be counted from the date of receipt of Input or capital goods by Job worker. The period of 1/3 year shall not apply to moulds and dies, jigs and fixtures or tools sent out to a job worker for job work.